Exclusive: Brazil says U.S. key to global imbalance

BRASILIA (BestGrowthStock) – Brazil’s Finance Minister Guido Mantega urged the United States on Wednesday to raise interest rates and allow the U.S. dollar to appreciate as a way of combating global economic imbalances.

“They must increase the interest rate in the United States … to find a new currency balance,” Mantega said in an interview with Reuters Insider in Brasilia.

“The problem isn’t China, it’s the United States,” he said, when asked about the impact of China’s weak currency on global trade.

Washington is pursuing a policy of low interest rates and is keeping the dollar weak to boost exports and improve its trade balance, sometimes at the expense of emerging economies, Mantega said.

He also urged the International Monetary Fund and European Union members to swiftly implement the Eurozone rescue package announced at the weekend.

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(Reporting by Raymond Colitt, Ana Nicolaci da Costa and Isabel Versiani)

Exclusive: Brazil says U.S. key to global imbalance